Setting self-discipline saving rates for Thai income earners in a risk-management framework

摘要

This study proposed a model for setting self-discipline saving rates in a risk-management framework and applied it to Thai income earners. The model involved financial planning, incorporating stochastic lifetime incomes, expenses, savings, and investment returns, together with mortality and morbidity data. The self-discipline saving rate was set so the probability that the bequest was less than the funeral expenses was at a pre-determined, low, acceptable level. The resulting rate was higher for females than for males, and it increased with age. When the rate was possible, the median net bequest of funeral expenses was positive for both females and males of all ages. Therefore, if earners follow the self-discipline saving rule, they are likely to have sufficient funds to cover the expenses of their own funeral.